Method and apparatus for managing remittance processing within account receivables

ABSTRACT

The Account Receivables System&#39;s Remittance Processing Module accepts funds in domestic and foreign currency and translates the funds into the required local currency for reporting purposes. The Remittance Processing Modules automatically generates and also performs exchange gain and loss calculations Auto Draft and Reverse Application functions. The Remittance Processing Module accepts funds electronically, and, under certain conditions, automatically applies and updates a customer&#39;s account in the most efficient manner.

BACKGROUND OF THE INVENTION

This invention relates generally to a web-enabled Accounts ReceivableSystem (ARS) and more particularly to methods aid apparatus for managingvarious functions related to accounts receivables, credit granting,collection, dispute management and reporting and remittance processing.

The accounting department of a business entity expends substantialresources managing account receivables. An accounts receivable functionincludes the tasks of credit inquiries, approving credit to new andexisting customers, and analyzing payment history of existing customers.In addition to credit approvals, aging of the receivables, disputes anddelinquencies, collections and proper application of the payments, anddetermining appropriate write-offs and appropriate reportingcapabilities, also must be managed. These tasks are time-consuming andoften take away resources of the corporation from its operations andother profitable activities. Completing several of these tasks alsotypically requires interfacing with outside agencies for credit approvaland constant updates to the customer records.

BRIEF SUMMARY OF THE INVENTION

In an exemplary embodiment of the invention, a web-enabled AccountsReceivable System (ARS) provides a full range of trade receivablesCredit & Collection services including credit evaluation, creditgranting, customer collection and account reconciliation, remittanceprocessing, application and banking, all account receivables (A/R)reporting, consolidation, including customer statement preparation andmailing, ending with direct feeds to a client's general ledger system(G/L) for the client's financial statement preparation. The systemserves clients by allowing them to outsource their full accountsreceivable (A/R) function while still retaining the importantcomputer-to-computer links covering order shipping approvals (aftercredit evaluation), billing/invoice feeds, customer dispute monitoringand reporting (on-line), and final month-end G/L interface forreceivables balancing.

The system includes five modules which include a Credit Inquiry Module,a Remittance Processing Module, an Accounts Receivable Claim Module, aMaintenance Module, and an Administration Module. These modules areintegrated with each other and are capable of interfacing with aclient's Order, Ship, Bill (OSB) system for smooth functioning. The ARSis further capable of automatically upgrading the software and systemstemplates to the client by downloading on a real-time basis as they arebeing implemented at a central site and as called for by a user.

In one embodiment of the invention, the ARS's Remittance ProcessingModule accepts funds in any foreign currency and translates the fundsinto the required local currency for reporting purposes. Reporting isalso done in a local or a foreign currency. Exchange gain and losscalculations are automatically generated by the Remittance ProcessingModule. The Remittance Processing Module performs Auto Draft and ReverseApplication functions. Further, the Remittance Processing Module acceptsfunds electronically, and, under certain conditions, automaticallyapplies and updates a customer's account in the most efficient manner.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram of an Accounts Receivable System including aserver system and a plurality of devices;

FIG. 2 is an expanded version block diagram of an example embodiment ofan Accounts Receivable System;

FIG. 3 is an example embodiment illustrating further additional detailof an Accounts Receivable System;

FIG. 4 is an exemplary embodiment of a software architecture for theAccounts Receivable System shown in FIG. 3;

FIG. 5 is a database structure within a database server of the AccountsReceivable System shown in FIG. 3;

FIG. 6 depicts the functions of an Order, Ship, Bill (OSB) System and anAccounts Receivable System with reference to a business process;

FIG. 7 depicts the functional relationship of the Accounts ReceivableSystem integrated directly into a client's OSB system and general ledger(G/L) system;

FIG. 8 is an exemplary screen layout of the Accounts Receivable Systemshown in FIG. 3;

FIG. 9 is an activity diagram for performing a credit check through aCredit Inquiry Module of the ARS shown in FIG. 3;

FIG. 10 is an activity diagram of the ARS shown in FIG. 3, for theinvoice generation;

FIG. 11 is an activity diagram of the ARS shown in FIG. 3, forremittance processing;

FIG. 12 is an exemplary embodiment of a screen layout of the ARS shownin FIG. 3, which displays a payment application to a customer account;

FIG. 13 is an exemplary embodiment of a screen layout of the ARS shownin FIG. 3, which displays the creation of a parent heirarchy record orpayor heirarchy record for the subsidiary customer;

FIG. 14 is an exemplary embodiment of a screen layout of the ARS shownin FIG. 3, which displays the manner in which payment that has beenapplied by Accounts Receivable System may be subsequently reversed;

FIG. 15 is an exemplary embodiment of a screen layout of the ARS shownin FIG. 3, which displays the reversal of a zero application and allother records;

FIG. 16 is an activity diagram of the ARS shown in FIG. 3, for thecollection process;

FIG. 17 is an exemplary screen layout of the Accounts Receivable Systemshown in FIG. 3, which displays customer interchange credit;

FIG. 18 is an exemplary screen layout of the ARS shown in FIG. 3, whichdisplays customer information sorted by customer number;

FIG. 19 is an exemplary screen layout of the ARS shown in FIG. 3, whichdisplays the detail aging of a given customer along with scratch padnotes;

FIG. 20 is an exemplary screen layout of the ARS shown in FIG. 3, whichdisplays the payment history of a given customer;

FIG. 21 is an activity diagram of the Accounts Receivable claim (ARC)procedure of the ARS shown in FIG. 3;

FIG. 22 is an exemplary screen layout of the ARS shown in FIG. 3, whichdisplays the root cause analysis summarizing outstanding AccountsReceivable Claims; and

FIG. 23 is a process flow chart for the ARS shown in FIG. 3.

DETAILED DESCRIPTION OF THE INVENTION

Exemplary embodiments of systems and processes that facilitateintegrated Internet-based accounts receivables process management aredescribed below in detail. The systems and processes facilitate, forexample, electronic submission of information using a client system,automated transmission of information, and web-enabled monitoring andreporting and management of account receivables including a final monthend general ledger interface for receivable balancing for client'susers.

The systems and processes are not limited to the specific embodimentsdescribed herein. In addition, components of each system and eachprocess can be practiced independent and separate from other componentsand processes described herein. Each component and process can be usedin combination with other components and processes.

FIG. 1 is a simplified block diagram of an Accounts Receivable System(ARS) 10 including a server system 12 and a plurality of devices 14connected to server system 12. FIG. 2 is an example embodimentillustrating additional detail of ARS 10. FIG. 3 is an exampleembodiment illustrating further additional detail of ARS 10. In oneexample embodiment, devices 14 are computers including a web browser,and server system 12 is accessible to devices 14 via the Internet.Devices 14 are interconnected to the Internet through many interfacesincluding a network, such as a local area network (LAN) or a wide areanetwork (WAN), dial-in-connections, cable modems and special high-speedISDN lines. Devices 14 could be any device capable of interconnecting tothe Internet including a web-enabled phone or other web-enabledconnectable equipment. Device 14 is capable of connecting directly toOrder, Ship, Bill (OSB) System 20 located at the client site. Serversystem 12 is also capable of communicating with OSB system 20 eitherthrough a direct link or through one of devices 14 located at the clientsite and upload and download the data as required. Accounts ReceivableSystem 10 is installed at a business entity site within a firewall 22while OSB system 20 is located at client site outside firewall 22 of thebusiness entity. Both systems are configured to download and uploadrequired data through a secure connection for performing the requiredfunctions.

As shown in FIG. 2, system 10 includes a server system 12 and devices14. Server system 12 also includes a database server 36 including a datastorage device 38, an application server 40, a web server 42, adirectory server 46, a fax server 52 and a mail server 56. A diskstorage unit 38 is coupled to database server 36 and director server 46.Servers 36, 40, 42, 46, 52, and 56 are coupled in a local area network(LAN) 60. In addition, device 14 includes a system administrator workstation 64, a customer service representative work station 66, a creditofficer's work station 70, and a general function work station 72. Workstation 72 is utilized by someone having an authorized access tomaintain and update ARS 10. Work stations 64, 66, 70, and 72 areconnected to LAN 60. Alternatively, workstations 64, 66, 70, and 72 arecoupled to LAN 60 via an Internet link or connected through an Intranet.

Each work station 64, 66, 70 and 72, in the exemplary embodiment, is apersonal computer including a web browser. Work stations 64, 66, 70 and72, are illustrated as being associated with separate functions only tofacilitate an understanding of the different types of functions that canbe performed by individuals having access to LAN 60.

In an alternate embodiment, server system 12 is configured to becommunicatively coupled to third parties, e.g., internal or externalauditors 78, and to various clients 80 located outside firewall 22, viaan Internet Service Provider (ISP) Internet connection 84. Thecommunication in the exemplary embodiment is illustrated as beingperformed via the Internet, however, any other wide area network (WAN)86 type communication can be utilized, i.e., the systems and processesare not limited to being practiced via the Internet. In addition, andrather than a WAN, a local area network could be used in place of theWAN.

Each outside client 80 is connected to their own OSB system 20. Outsideclient 80 also has a work station 88, which is a personal computerincluding a web browser. Also, Work stations 88 are configured tocommunicate with server system 12. Furthermore, fax server 52communicates with outside clients 80 and any of the remotely locatedoverseas clients including a device (not shown) via a telephone link.Fax server 52 communicates with other devices 64, 66, 70 and 72, aswell. Accounts Receivable System 10 is installed at a business entitysite while OSB system 20 is located at the client site. Both systems 20,and 10 are configured to download and upload required data through asecure connection, from each other, for performing the requiredfunctions. Continuous enhancements ensure compatibility to use newtechnology as it becomes available which ultimately reduce cost andimprove efficiency.

As shown in FIG. 3, device 14 is a desktop (thin device or oftenreferred as thin client). Thin devices, as used herein, are Intelcompatible PCs with Pentium or higher processors and a minimum 36 MB RAMrunning Windows 95 or Windows NT 4.0 workstation and Internet Explorer4.0 and above. Server system 12 includes an application server 40 with aPentium processor and a minimum 64 MB RAM running Windows NT 4.0 serverand an Internet Information Server 92. The Business logic will reside inthis layer in the form of Dynamic Link Libraries (DLL). An Oracle 7.3.2database 94 on UNIX is used as a Database server 36, which is part ofserver system 12. Database server 36 is a server including a Pentiumprocessor and a minimum 64 MB RAM running Sun Solaris. The databaselayer resides within database server 36. Centralized database 94containing a variety of information relating to clients and theircustomers, as described below in greater detail, is stored on databaseserver 36 of server system 12 and can be accessed by potential users atone of devices 14 by logging onto server system 12 through one ofdevices 14. Stored procedures are used to access database 94. Alldatabase interactions are done through Active X DLL's. Devices 14 areinternally connected to OSB System 20 located at the client site. Serversystem 12 communicates with OSB system 20 either through a direct linkor through one of the devices 14 located at the client site to uploadand download the data as required.

FIG. 4 is an exemplary embodiment of the software architecture 98 of ARS10, database server 36 and application server 40 of Server system 12.The Software Architecture used in ARS system 10 has a Web Browser suchas IE 4.0 and above as the front end. The Web Browser downloads theActiveX controls developed in VB5.0, which forms the User Interface.

Middleware in ARS 10 implements the business rules and database callsand resides on the NT application server. The middleware is in the formof ActiveX objects (DLLs). Middleware is a software that connects twootherwise separate applications. For example, there are a number ofmiddleware products that link a database system to a Web server. Thisallows users to request data from the database using forms displayed ona Web browser, and it enables the Web server to return dynamic Web pagesbased on the user's requests and profile. Middleware retrieves data fromOracle database 94 residing on the UNIX server. IIS is used as theWebServer. Active Database Objects (ADO) are used for database access.Oracle 7.3.2 database 94 resides on the UNIX Server.

Security in ARS 10 is closely monitored because of confidential andproprietary client information. Security is maintained in the system byproviding various authority access levels. These access levels exist forindividuals with different authorities such as Headquarter authority,supervisor authority, credit evaluator authority, Collector authorityand remittance processing authority. When the user logs onto theapplication, the user's authority is checked, and depending upon theuser's authority the user is given access to select screens.

Apart from the above security, ARS 10 also maintains regular securitythat is normally involved in every Intranet application. In every ActiveServer page ARS 10 checks whether the user has logged in and if the userhas logged in then system 10 also checks whether the user has come forthe right Active Server Page from which the user is supposed to access.If none of the above criteria is satisfied then system 10 displays anerror message “Invalid Access to Screen”. Also there is a sessionvariable that checks if the logged on user is idle for more than apredetermined period of time and if so the user is automatically loggedout of the application.

FIG. 5 is database 94 structure within database server 36. Database 94is coupled to several separate components within server system 12, whichperform specific tasks. ARS 10 manages full range of trade receivablescredit and collection services involving credit evaluation creditgranting, customer collection and account reconciliation, remittancereceipt, application processing, banking, receivables consolidation, andupdating OSB general ledger. ARS 10 receives the pertinent informationfrom client's OSB system 20 for processing and generating requiredjournal entries with a variety of reports for financial monitoring,reporting and auditing purposes. The information retrieved and processedis stored in centralized database 94 for permanent as well as temporaryaccess.

For example, server system 12 is divided into separate components suchas, a download component 100 for downloading journal entries and avariety of reports, a display component 102 for displaying the journalentries and the variety of reports, a transmit component 108 fortransmitting required information to the OSB system, and a printingcomponent 112 for printing journal entries and the variety of reportsdownloaded and displayed by the respective server components. The systemaccepts commands from device 14, e.g., by utilizing a peripheral to makea selection or by utilizing a voice command. Server system 12 includes aprocessing component 116 for searching and processing received requestsagainst data storage device 38. Furthermore, server system 12 alsoincludes a retrieving component 120 to retrieve information from datastorage device 38. An information fulfillment component 122 downloadsthe requested information after retrieving from data storage device 38to the plurality of devices.

The architectures of systems 10 as well as various components of system10 are exemplary only. Other architectures are possible and can beutilized in connection with practicing the processes described below.

FIGS. 6 through 23 illustrate the operational flow of ARS 10 includingthe interrelationship among various ARS 10 modules and the interfacebetween ARS 10 and OSB 20.

FIG. 6 depicts the functions of OSB System 20 and ARS 10, with referenceto a business process 160. OSB System 20 includes an Order Entryfunction 164, a Shipping function 170 and a Billing function 174. ARS 10includes the remaining functions involved with accounts receivables ofbusiness process 160 including managing customer credits, receiving andprocessing payments against open invoices, balancing general ledger on aperiodic basis, financial statement data generation for accounting andinternal controls and preparing periodic reports to meet generallyaccepted accounting principles (GAAP) and Financial Accounting StandardsBoard (FASB) requirements. Clients 80 from their individual locationsoperate OSB system 20 and a General Ledger (G/L) system 180. ARS 10 isoperated at a remote location by a business entity, which has a group ofprofessionals specializing in ARS 10. In an alternative embodiment, ARS10 is operated and managed at the clients' locations by the clients' ownstaff with training and system enhancements being performed by ARS 10staff.

FIG. 7 shows how ARS 10 interfaces with a client OSB system 20 andgeneral ledger (G/L) module 180 to provide continuity to the client. ARS10 receives the data from, and transmits the data to, the differentcomponents of OSB system 20 such as Order Entry 164, Shipping 170, andBilling 174. Order Entry 164 processes the customer order by extractingdata from Pricing component 176 and Inventory component 178. ARS 10 alsointeracts with various other components 182 of client system asrequired. The integrity of OSB system 20 is critical for properfunctioning of ARS 10 since ARS 10 uses the data received from OSB 20 togenerate the general ledger entries as well as other management reports.ARS 10 manages several other aspects of business process 160 to properlypopulate the general ledger with pertinent receivable data on a periodicbasis including processes involved with credit management.

FIG. 8 is an exemplary screen layout of ARS 10. ARS 10 involves creditgranting, collection, remittance processing, andreporting/administration. ARS functions are organized into five modules:a Credit Inquiry Module 190, a remittance processing Module 194, anAccounts Receivable Claim (ARC) Module 200, a Maintenance Module 204 andan Administration Module 210. Remittance Processing Module 194 issometimes referred to as a Cash Application Module. Credit InquiryModule 190 provides to the user extensive customer and receivablerelated information in a variety of ways. Remittance Processing Module194 involves processing of remittance payments, delinquency managementand payment-related functions. ARC Module 200 manages customer disputes.Maintenance Module 204 is used to maintain and store various types ofcustomer information. Administration Module 210 is used to handlesecurity and high-level systems functions.

There is a high level of integration across all the modules. Although auser may enter a function attached to a particular module in ARS 10,subsequent navigation takes the user back and forth across the differentmodules in ARS 10. For example, a user applying a check in RemittanceProcessing Module 194 accesses Credit Inquiry Module 190 to conduct acustomer search or to display invoice details. A user viewing a customerstatement accesses Maintenance Module 204 to modify customerinformation, or Remittance Processing Module 194 to offset debit andcredits together under the account, or ARC Module 200 to set up ordisplay a dispute. A user searching for an invoice in Credit InquiryModule 190 or setting up a reference between two invoices in MaintenanceModule 204 accesses Remittance Processing Module 194 to display a listof duplicate invoices. Similarly, a user reviewing billing batches inAdministration Module 210 accesses Credit Inquiry Module 190 to displayinvoice details.

Overall, ARS 10 provides a full range of credit and collection servicesfor trade receivables including credit evaluation, credit granting,customer collection and account reconciliation, payment receipt,application and banking, account receivables (A/R) reporting,consolidation, including customer statement preparation and mailing,ending with direct feeds to the client's general ledger (G/L) system 180for financial statement preparation. ARS 10 can produce journal entriesto update G/L system 180 by using pseudo account numbers internallywhich are mapped and transferred to client's G/L system 180 via a filetransfer protocol (FTP). ARS 10 provides an option to clients 80 tooutsource their full A/R function while still retaining the importantcomputer-to-computer links with OSB system 20 covering order shippingapprovals (after credit valuation), billing/invoice feeds, customerdispute monitoring and reporting (on-line), and final month-end G/Linterface for receivables balancing. Each module of ARS 10 is describedin detail.

A. Credit Inquiry Module

Credit Inquiry Module 190 primarily involves credit evaluation at thetime the customer account is set up, and credit maintenance activities.Credit Inquiry Module 190 also interfaces with various modules to accessdelinquencies, collections and write-offs.

Credit Inquiry Module 190 reviews pay history and performs creditinquiries. Pay history is a set of calculations based on a paymentperiod from invoice date to date of payment received. ARS 10 sorts alldata and compiles it into a report that compares the data over aneighteen-month period and displays it in six-month increments. CreditInquiry Module 190 accesses a customer account and views a diversesupply of data used for customer analysis, credit management, andcustomer contact. Credit Inquiry Module 190 further includes searchoptions.

Credit Inquiry Module 190 predicts remittance forecasts for a specificcustomer or account based on historic data. ARS 10 predicts overall cashforecasting for the client. Credit Inquiry Module 190 further performsaudit verification for tracking all transactions at the customer levelfor account reconciliation.

1. Credit Application Process [New Customer]

The client works with the business entity to establish approval criteriaon new customer accounts and to choose client specific credit scoringoptions using scoring software programs contained in ARS 10.

FIG. 9 is an activity diagram for performing a credit check for anexisting customer through Credit Inquiry Module 190 on a customer whohas placed a purchase order through OSB system 20. Once the customerplaces a purchase order, ARS 10 receives a request for approval 220 on anew account. ARS 10 procedures routes request for approval 220 to adesignated credit officer 224 out of a plurality of credit officers 230.Credit officers 230 are also sometimes referred to as collectors orcollection representatives. Designated credit officer 224 performs aninitial credit investigation 234 on request for approval 220 of the newaccount. Designated credit officer 224 automatically approves requestfor approval 220 if the order aggregates less than an amount specifiedby the client or if the order is from a specified known customerpre-designated by the client. If request for approval 220 is notautomatically approved 240, designated credit officer 224 performs adetailed credit investigation 244.

Credit investigation 244 does not have a specified application; ratherit involves a variety of tools such as Dun & Bradstreet reports 250and/or other credit reporting agencies 254, trade references 260, bankreports 264, financial statements 270, customer visits 274, and surveyof Mines and Industrials 280. ARS 10 electronically interfaces with Dun& Bradstreet or other credit reporting agencies for searching andidentifying a customer by name, address and telephone number andobtaining Dun & Bradstreet reports 250 or other credit reportingagencies reports 254, thereby minimizing the time in the credit approvalprocess.

Based on credit investigation 244, designated credit officer 224determines whether credit should be granted to the customer. Eachdesignated credit officer 224 has limits to the credit authority, whichare resident and strictly controlled within ARS 10. Designated creditofficer 224 cannot grant a credit line in excess of their delegatedauthority limits. ARS 10 restricts access for changing the credit limitsof credit officers 230 only to specified authorized individuals withinthe business entity.

If the customer meets the pre-determined parameters of creditinvestigation 244 and if the credit is within the limits authorized todesignated credit officer 224, designated credit officer 224 approvesthe new account request. If the customer does not meet thepre-determined parameters of credit investigation 244 or if the creditrequested by the customer exceeds the authorized limits of designatedcredit officer 224, then ARS 10 personnel attempts to obtain security290 such as personal guarantees 294, inter-corporate guarantees 300,PPSA 304 or conditional sales agreements 310. For approval of variousorders, a letter of credit 314 may be sought.

Once designated credit officer 224 makes a decision 324 to approve theorder, ARS 10 assigns an approval number in the case of an existingaccount or an account number 326 in the case of a new customer accountto the order and interfaces with OSB system 20 which performs OrderEntry function 164, Shipping function 170, and Billing function 174. Aninterface 330 completes the credit approval process.

2. Customer Order Approval—[Existing Customer]

FIG. 10 is an activity diagram which depicts the process for customerorder approval and invoice generation 412 as well as credit approval andposting of general ledger entries on G/L system 180. Activities arelocated in respective columns based on the system that performs theactivity. The columns correspond to OSB system 20, G/L (General Ledger)System 180 and ARS 10.

OSB system 20 enters/receives a customer order approval request 414. OSBsystem 20 makes 416 a decision to automatically approve customer order414 if the amount of order 414 is less than or equal to the OrderControl Limit (OCL) 422. OCL 422 is initially established when theaccount is set up in ARS 10. After the initial set up, there are threeways in which the OCL 422 can be adjusted. Designated credit officer 224can change the limit, or can place a Hold Order or a Credit Referral onthe account. If a Hold Order or Credit Referral is placed on theaccount, OCL 422 is automatically reduced to zero. These changes to OCL422 are fed to the client's OSB system 20 in a pre-determined cycle.

If the amount of approval request 414 exceeds 424 the OCL, approvalrequest 414 is deferred and designated credit officer 224 is informed ofthe deferral through ARS 10. Designated credit officer 224 then makes428 a decision to approve, decline or hold the approval request 414.Since the information is fed back and forth between OSB system 20 andARS 10 in pre-determined cycles, the time lag for a decision is shortwith the vast majority being automatically and instantly approved withinthe client's OSB 20 based on ARS 10 pre-approvals. Once approved, OSBsystem 20 ships product 430 and generates a final invoice 432. Theclient's OSB system 20 manages pricing and stores this informationtogether with customer discounting structures, etc., within OSB system20 and subsequently generates a customer invoice (hard copy orelectronic) for its customer. OSB system 20 also creates a batch file436 and dispatches said batch file 436 to ARS 10 the same evening.

Batch file 436 includes basic information 440 pertaining to invoice 432.Information 440 received electronically to ARS 10 includes informationsuch as a date of invoice 442, a due date of invoice 444, a currency ofinvoice 446, an amount of invoice 448, a customer number 450, a billingidentification recognition code (IC) 452, an invoice number 454, otherpayment terms 456 and a customer purchase order number 458, ifavailable.

ARS 10 then uses batch file 436 to update the customer's statement 460for collection and monitoring purposes. ARS 10 also posts a journalentry 462 for balancing of the client's G/L system 180 at the month end.ARS 10 finally produces an “assessed receivable” total 464, whichprovides the client with the G/L interface numbers to balance itsfinancial statement and outstanding receivables. As part of thisfunction, ARS 10 produces aged trial balances, dispute reports, trendingreports, and any other reports for use by the client in substantiatingassessed receivable total 464.

B. Remittance Processing Module

Remittance Processing Module 194 involves application of remittancepayments, aging the receivables. Remittance Processing Module 194 hasseveral capabilities including accepting funds in any foreign currencyand translating the funds into the required local currency for reportingpurposes. In one embodiment, the reporting is conducted in localcurrency. In an alternative embodiment, the reporting is conducted inforeign currency. Exchange gain and loss calculations are automaticallygenerated by Remittance Processing Module 194 of ARS 10. RemittanceProcessing Module 194, under certain conditions, automatically appliesand updates a customer's account through a series of algorithms.Appropriate individuals, as designated, based on systems' securitylevels, have the authority to ZAP a particular account. ZAP is aderivative of remittance processing which allows for offsetting of itemswithin a customer's account. In these situations, updating of balance isperformed automatically online.

Remittance Processing Module 194 displays the accounts and applies thereceived cash by Payor Hierarchy. Payor Hierarchy allows the user toaccess multiple accounts through one or more designated main accounts.Remittance Processing Module 194 also allows Auto Draft and ReverseApplication functions in conjunction with Maintenance Module 204. AutoDraft selects specific invoices in a customer's account to be paid,which are formatted into an electronic bank file for funds transfer.Through Reverse Application, ARS 10 reverses previously completedapplications and associated general ledger entries on G/L system 180,and restores the account to the original balance on-line.

The following steps explain the operational and the functional flowinvolved in managing Remittance Processing Module 194.

1. Payment Receipts and Application

FIG. 11 is an activity diagram for remittance processing. In most cases,the customer remits to the business entity the payment 470 on invoicesthrough checks, wire transfers, electronic deposits, credit cards ordrafts. ARS 10 receives the payments 474 and deposits them 480 inclient's bank account.

Remittance Processing Module 194 of ARS 10 generally applies payments474 to the invoice(s) 440 to which the customer wishes the payment to beapplied. If remittance instructions are not received by ARS 10, the cashreceived is treated as On Account Unapplied Cash. ARS 10 automaticallysends a letter to customers who have On Account Unapplied Cash. Theletter asks for instructions on how to apply the cash (and may result ina call to the customer for information). The On Account Unapplied Cashmoves with the aging buckets but does not reduce the delinquency amountsuntil it is applied, unless specifically cross referenced by designatedcredit officer 224 to a particular aging bucket. The cross-referencesdone by designated credit officer 224 reduce the balance of the agingbuckets that the On Account Unapplied Cash amounts are cross-referencedto in ARS 10. ARS 10 maintains an audit trail of all cross-referencesmade by designated credit officer 224.

ARS 10 accepts payments 474 in multi-currency 484 and accounts forexchange gains or losses in the balancing process. ARS 10 also offerson-line remittance processing 490 so that concurrently with theapplication of the checks against the invoices, these invoices are shownas paid and the customer balance is updated in an on-line format.Remittance processing 490 allows for multi-account connectivity asdepicted in FIG. 14 herein. During remittance processing 490, ARS 10identifies any cash variances, exchange losses, discounts andconcessions that are allowed. ARS 10 then automatically balances payment474 by writing the journal entry so that the appropriate cash variance,exchange variance, discount or concession journal entry is included inthe receivable totals balancing 494. Remittance Processing Module 194 isbalanced 494 in batch mode overnight and the appropriate journal entriesare generated to update the receivable numbers in the client's G/Lsystem 180.

ARS 10 produces numerous reports and on-line screens which remittanceprocessors use to reconcile the amounts of payments 474 received againstthe amount of cash applied and the amount deposited in the bank, so thatany imbalance positions are immediately discovered. ARS 10 produces acurrent activity file on every transaction or edit to ARS 10 and alsoties in the identification code of the person who made any change withinARS 10 at any time. This file is archived to a storage media.

FIG. 12 is an exemplary embodiment of a screen layout of ARS 10, whichdisplays a payment application 510 to a customer account. Paymentapplication 510 permits the operator to select a method 514 to apply thepayment in a particular manner, such as by account descending 516, astatement balance 520, an invoice number 522, a payment from oldestinvoices 524, pay by finder number 530, an invoice search 534, etc.

FIG. 13 is an exemplary embodiment of a screen layout of ARS 10, whichdisplays the creation of a parent hierarchy record or payor hierarchyrecord for the subsidiary customer. Specifically, the customer record ofa subsidiary 544 is interconnected to a payor 600. This provides amerging of multiple accounts in order to obtain on-line aging ofcustomer exposure and better facilitate remittance processing.

FIG. 14 is an exemplary embodiment of a screen layout of ARS 10, whichdisplays the manner in which payment 474 that has been applied by ARS 10may be subsequently reversed. A previous payment application is reversedin ARS 10 by providing information relating to a customer number 610, acheck reference 614, a check number 620, a lock box number 624, a batchtype 630, and a batch number 634.

In an alternative embodiment, information is automatically provided bydata from other screens being used to populate select fields withinreverse check screens.

FIG. 15 is an exemplary embodiment of a screen layout of ARS 10, whichdisplays the reversal of a zero application and all other records. Thescreen layout identifies a customer number 640, a finder number 642, andan invoice number 644 through which the operator offsets certain itemsto an account of customer 640 and updates the records of customer 640on-line.

2. Concentration Monitoring

Designated credit officer 224 can monitor the account balances andactivity on-line through ARS 10. Periodically, reports are generatedthat indicate the accounts on which action is required during thefollowing week. Accounts are included in the report if they meet any ofthe exception conditions which can be changed immediately through theuse of tables. ARS 10 produces numerous reports from the individualaccount level up to the overall client level.

3. Aging

The criteria and process used in ARS 10 aging are very definitive, withan item being classified as being past due on the day after its duedate. The aging of accounts in the credit status system is automatedsuch that customer remittances are applied on-line, and the customer'sbalance is updated immediately for credit control purposes. Invoicesthat are not delinquent are broken into two sections: Current and NotDue. Current means the invoice is due within 30 days from a definedclosing date. Not-due means that the invoice is due at least 31 daysfrom a defined closing date. Delinquent (or past due) means the invoiceis unpaid at least one day after its individual due date. The mainreport used to identify aging is an Aged Trial Balances as well as aTrending Report.

Although the aging of accounts receivable has been described here inRemittance Processing Module 194, in another embodiment, it can beaccessed or interfaced from other modules such as Credit Inquiry Module190, ARC Module 194 or Maintenance Module 204.

4. Delinquency Management

The normal delinquency collection cycle takes place by designated creditofficer 224 and is triggered by either a past due condition which isidentified on a weekly exception condition run and/or an on-line inquiryscreen showing a customer who has exceeded their credit line. Althoughthere are a variety of reasons for making collection calls orreconciliation attempts, the principal reason is delinquency.

One of the biggest collection incentives are the targets imposed uponcredit officers 230 for collections as a percent to availablereceivables (total receivable balance less not dues) as well as percentto forecasted collections (used to measure ability of credit officer 224to set accurate targets) which are monitored and reported on a monthlybasis for each credit officer 224 and which become a part of the yearlyperformance evaluation of credit officers 230.

FIG. 16 is an exemplary embodiment of a simplified activity diagram ofthe collection process. Once accounts have been identified as requiringcollection calls or preliminary investigative calls, designated creditofficer 224 begins the required collection activities 700. These arereviewed based on collections as a percent to forecast and availableamounts as well as delinquency ratios. Delinquent accounts are reviewedroutinely by credit officers 230 with their particular District CreditManagers in order to increase the intensity and level of collectionactivity, if required.

Some customers require a high degree of account reconciliation whichmust take place between credit notes being issued, customer debit notesbeing deducted, ARC 654 being rejected and/or proof of deliverysupplied, etc. This is done on a daily basis by designated creditofficer 224 as he provides the expertise to effectively manage theportfolio so that the client's own internal measurements are achieved.There are, however, cases where concessions are made to the customer andthese are normally taken up by the District Credit Managers who reviewsthe items in question with designated credit officer 224 and makesrecommendations for concession write-offs to the Region Manager whofurther reviews and, if appropriate, requests sign-off by the VicePresident-Finance of the client. The client has the option of delegatingthis to the personnel of the business entity.

ARS 10 has a variety of reports that monitor delinquencies such as anaged trial balance 710, an on-line aged balance 712, an on-line customerdata summary 714, an interchange 720 from various credit agencies,payment habit statistics 724, ARS 10 generated collection letters 730(also sometimes referred to as “dunning” letters), a credit scoring 734,a parent hierarchy 740, communications on scratch pad 744, and otherreports. Payment habit statistics 724, also sometimes referred to aspayment history reports, are on a per account basis, per credit officer224 basis, per client basis, etc. These reports are generated eitheron-line or in a monthly format together with the weekly exceptionreports on collection calls that are required. They are distributed todesignated credit officer 224 with monthly aged trial balance 710 beingprovided to the individual client involved. The “trending report”encapsulates 38 actuals of A/R information per month on a 13 monthtracking trend on one sheet of paper with their top 25 customer abuserson the back page.

An account is defined as being past due or delinquent within ARS 10 onthe first day beyond the agreed upon terms of sale 746. For example, aninvoice billed on Jan. 1, 2000 with a term of net 30 days becomes pastdue and delinquent on Jan. 31, 2000 and is reported in that format. ARS10 extracts from the billing input file the term 456 that is associatedwith each individual invoice and, together with its table matrix whichhas been approved by the client, assigns the particular due date 444.The aging on ARS 10 is measured on a day-by-day basis, which is anaccurate measurement facilitating better follow-up on delinquencies.

Each month ARS 10 receives feeds from Dun & Bradstreet and other creditreporting agencies. Ownership changes, rating changes, judgments, andlarge decreases in Paydex or Payment Index scores are reported todesignated credit officer 224 in a hard copy report. Additionally, anypromises to pay made by customers are input into ARS 10. These promisesalso appear on-line and on the weekly exception reports.

Delinquent accounts are handled by a variety of methods depending on thesize of the dollars past due and the customer history for delinquencies.Collection letters are used 750 for smaller accounts. MultipleCollection letters, of increasing (strength), may be generated afterindividual invoice due dates based on a variable criteria by client andat predetermined intervals. Larger or “at risk” customers typically donot pass through the collection letter process 750 and are directlycontacted by phone when their accounts become past due.

Sometimes, a customer has delinquencies in the form of a reconciliationprogress whereby a substantial portion of the account is paid within thenormal industry standard payment terms and it is important thatcollection calls not irritate the customer. Designated credit officer224 is responsible to manage the account through its life cycle and tobuild a customer service oriented rapport with that customer for themaximum benefit to the client. In some cases special arrangements suchas having the customer pay down old balances with the purchase of newgoods allows the customer to work down any outstanding obligations.

ARS 10 also reviews 754 other documentation pertaining to the delinquentaccount such as letter of credit 314, export insurance, and otherfinancing documents.

Past due accounts are managed by a variety of credit officers 230 andare, in various instances, placed for collection 760 with an outsidecollection agency and/or lawyer prior to the request for bad debtauthorization. By this, an independent third party makes an unbiasedattempt at collecting the funds before writing it off as a bad debt.Customers that are bankrupt or have receivers appointed are handled 764in accordance with the appropriate law. Generally, ARS 10 transfers suchaccounts to active bad debt files (discussed below). Any cash collectedthrough collection activities 700 is processed through RemittanceProcessing Module 194.

FIG. 17 is an exemplary screen layout of ARS 10, which displays customercredit interchange. Although the screen layout displays an embodiment ofDun & Bradstreet reports 250, similar screens are also obtainable fromother credit reporting agencies 254. ARS 10 utilizes a risk code system766 that assigns a value from 1 to 8 based on information from tradeexperiences, Dun and Bradstreet, and other credit reporting agencies. Ifno information is available, the account is coded “N”. These codes areused to override “off” switches that may be present, such as the switchto turn off collection letters, also known as Dunning letters (discussedlater) or other exception conditions.

FIG. 18 is an exemplary screen layout of ARS 10 which displays customerinformation sorted by customer number 768. This information is accessedby designated credit officer 224 through ARS 10 during their detailedcredit investigation 244 as well as on-going account review andmonitoring. The customer information includes a name 770, an address772, a telephone number 774, a Dun & Bradstreet rating 776, a risk code778, an amount of highest credit 780, a date of last sale 782, theyear-to-date sales 784, the unshipped order 786, a date customer wasopened 788, a balance 790, a current balance 792, a past due balance794, a name of parent 796, a currency 798, credit status 800, and otherinformation.

ARS 10 reviews individual accounts on an exception basis. There is alsoa more formalized procedure whereby ARS 10 establishes a periodic creditupdate review and alerts designated credit officer 224 within apre-determined time period prior to the lapse of the date that a reviewis required. This review may be simply designated credit officer's 224mental review of the account, payment status with ARS 10, pay history,days to pay statistics, Dun & Bradstreet on-line interface information,so that an approval is input in ARS 10 to change the review date foranother year. ARS 10 checks any change in the credit requirement to theindividual identification code of designated credit officer 224 makingthe change to ensure that the credit limit of the customer has not beenincreased beyond the delegated authority of designated credit officer224.

FIG. 19 is an exemplary screen layout of ARS 10, which displays thedetail aging of a given customer 802 along with scratch pad notes 744.Scratch pad notes 744 include telephone or other exchange with or fromcustomer, information regarding credits to customer, or otherinformation. The screen layout identifies a date 804 of the last checkreceived from customer 802 and the aging of the accounts receivablebalance 806 which classifies the balance as past due for 1–30 days,31–60 days, 61–90 days, 91–180 days, 181–365 days and over 365 days.

FIG. 20 is an exemplary screen layout of ARS 10, which displays thepayment history 810 of a given customer 802. For customer 802, thescreen layout identifies the net sales 812, the credit notes 814, thehighest credit granted 816, a write-off amount 820, a check returned fornot-sufficient funds 824 and other information, all of which informationis displayed by the current semester 830, the last six months 834 andthe prior six months 840.

Although delinquency management of accounts receivable has beendescribed here in Remittance Processing Module 194, in anotherembodiment, it can be accessed or interfaced from other modules such asCredit Inquiry Module 190, ARC Module 200 or Maintenance Module 204.

5. Bad Debt—Write Offs and Recoveries

ARS 10 provides a sophisticated method for tracking bad debts once theyare written off. In essence, when a write off to bad debt takes place, ajournal entry is input to ARS 10 which simply transfers a mirror imageof that customer's bad debt statement out of the normal receivablestatements, generates an automatic journal entry to the client's G/Lsystem 180 and mirror images the customer statement on an internal“active bad debt file”. From the client's perspective the balance istreated as a write-off. All write-offs proposed by ARS 10 are signed offby the client's Vice President of Finance (or delegate). Bad debtsprincipally generated from receiverships, bankruptcies, etc., are stilltreated as active bad debt customers. Such information is transferred tothe active bad debt file on ARS 10 which does not impact the client'saged trial balances. Files are transferred to the management individualassigned responsibility for bad debt monitoring who, on a routine basis,follows up with the various trustees, receivers, collection agencies,etc., to generate some recovery. On receipt of a final disbursementletter from the trustee or receiver, or a decision is made that there isno chance of additional recovery, the District Manager prepares arecommendation to transfer these specific customers out of the activebad debt file and to consider them to be inactive bad debts, which arethen consolidated and stored in off-site storage for tax and auditpurposes.

ARS 10 produces monthly runs of outstanding active bad debt accountswhich are controlled by the appropriate District Managers. All bad debtsare signed by the District Manager, the General Manager and a clientdelegate of the Vice President Finance.

Bad debt provisions are calculated by ARS 10 for each year and thendivided into quarters. The bad debt provision is set at the average netbad debts over the last six years. The provision is checked againstactual bad debts each quarter, and provisions are also adjusted up ordown each quarter, as required. Year-end bad debt provisions, ascalculated on ARS 10, are then recommended to the client.

Although the write-off process has been described here in RemittanceProcessing Module 194, in another embodiment, it can be accessed orinterfaced from other modules such as Credit Inquiry Module 190, ARCModule 200 or Maintenance Module 204.

C. Account Receivable Claims (ARC) Module

ARC Module 200 manages the Accounts Receivable Claim Process whichinvolves identifying invoices as disputed, and sending notice of suchdisputes to the client for resolution through on line communication.Upon generation of a claim, ARS 20 tracks the status in multiple waysand ages disputed items until final resolution.

The following process description explains the details involved indispute resolution and other aspects of operational functions involvedin managing Accounts Receivable Claims.

1. Dispute Resolution

FIG. 21 is an activity diagram of the accounts receivable claimprocedure. Disputes from customers are recorded 844 in ARC Module 200,which are instantly logged in, numbered, and filled in with theappropriate word description to generate an accounts receivable claim(ARC) 846. Based on the identification code matrix established for ARS10, ARC 846 is immediately available on-line 850 to the responsibleperson within the client 854 for resolution and on-line tracking 860.Hard copies of individual disputes are also printed overnight 850 inbatch mode on designated printers for each of the client's responsiblepersons if requested. These persons input comments 864 on-line with anycredit notes that are issued to adjust the customer short payments sothat prompt offsets take place for aging purposes. Designated creditofficer 224 puts their comments 870 on ARC 846. Should a customerdispute be disallowed or rejected, using ARC 846 the client writes tothe customer wherein the letter is laser printed on ARS 10 and mailed orfaxed from the business entity's pooled location using the businessentity's mailing volumes and procedures. These letters are electronicand become a part of ARC 846 for follow-up and audit purposes. Once thedispute is resolved, designated credit officer 224 closes 874 ARC. OpenARC 846 is maintained, reporting stored 880 on-line for aging purposesuntil, collected, credited or written off.

FIG. 22 is an exemplary screen layout of ARS 10, which displays the rootcause analysis 890 summarizing outstanding Accounts Receivable Claims.This screen layout identifies the customer, a responsible person 892from the client for said customer and an aging 894 of the accountsreceivable disputes balance for the customer. Aging 894 identifies ifthe balance is current, 2 months past due, 3 months past due, 4–6 monthspast due, 7–12 months past due or 12 months past due. Designated creditofficer 224 or responsible person 892 identifies and inputs 896 thereason(s) for the dispute with the customer and the amount in dispute.In an alternative embodiment, the data is captured from the initial ARCsetup during remittance processing. For example, the reason for thedispute may be a sales concession, invoice not per contract, pricingerror, or other reasons unique to each client and maintained in tables.

D. Maintenance Module

Maintenance Module 204 is used to maintain various types of informationabout the customer. For example, Maintenance Module 204 maintains andallows modifications to the customer information such as name, telephonenumber, and address. As depicted in FIG. 14, Maintenance Module 204 alsomaintains and updates connectivity between separate accounts.Additionally, through Maintenance Module 204 a customer servicerepresentative, designated credit officer 224, or any otherrepresentative of the business entity accesses or updates anyinformation pertaining to the customer interface. Maintenance Module 204is very flexible and is accessible from Credit Inquiry Module 190,Remittance Processing Module 194, ARC Module 200 or AdministrationModule 210.

E. Administration Module

Administration Module 210 deals with normal system administrator'sfunctions including the maintenance of the security of the system.Additionally, Administrative Module 210 is utilized in updating variousdata and tables both during a nightly batch process and during on-lineprocessing. Managers and supervisors have authority to accessAdministration Module 210 to update various records relating to theclients and their customers.

FIG. 23 is a process flow chart 900 summarizing the functionality of ARS10. The first step of the process involves interfacing 910 with OSBsystem 20 to exchange and download the required data. After receiving920 the invoice data, ARS 10 processes 930 billing files. ARS 10extracts 940 data from the received information and posts the data toARS 10 where it is then available to authorized users of ARS 10 businessentity and client system 14. Data is then loaded 950 and displayed 960on client system 14 or any other devices attached to ARS 10 for analysisand processing 962. Once the payment is received 970 from the customer,the payment is posted 980 to a proper customer account through ARS 10.ARS 10 personnel having the authority to adjust 990 or move the paymentfrom one account to another, in the event of an error. Once the paymentis posted and the account is updated, ARS 10 generates 1000 the requiredgeneral ledger entries and transfers 1010 the same to post on client'sG/L system 180. ARS 10 then downloads and displays general ledgerentries as well as other information relating to the client or client'scustomers on devices 14 or client's work station 88. The informationretrieved from OSB 20 as well as information generated by ARS 10 betweenvarious steps is stored in Database 94 on disk storage unit 38.

While the invention has been described in terms of various specificembodiments, those skilled in the art will recognize that the inventioncan be practiced with modification within the spirit and scope of theclaims.

1. A method for managing trade receivables credit and collectionservices using an accounts receivable system including a server systemcoupled to a database, said method comprising the steps of: providing aplurality of customer devices; associating a device with a businessenterprise, the business enterprise having a client wherein the businessenterprise and the client are separate and distinct business entities,the client having customers, wherein the business enterprise device isconfigured with a browser; connecting the server system associated withthe business enterprise to the business enterprise device, wherein thebusiness enterprise manages trade receivables credit for the client,manages collection services for the client, and updates a general ledgerof the client; establishing a communication link between a client systemand each of the business enterprise device, the server system, and theplurality of customer devices, the client system is associated with theclient and manages ordering of products by customers using the pluralityof customer devices, manages shipping of products to customers, andmanages billing for ordered products; receiving customer invoiceinformation at the server system from the client system, the customerinvoice information includes information relating to a customer of theclient; utilizing data from the customer invoice information; acceptinga payment from the customer to the client; applying at the server systemthe payment to invoices issued by the client to the customer; updating acustomer account by posting the payment and any delinquencies afterapplying against correct invoices; generating at the server systemjournal entries to update accounts receivable for the client; and usingthe server system to post the journal entries including any customerdelinquencies on a general ledger of the client via the client systemfor financial monitoring, reporting and auditing purposes.
 2. A methodin accordance with claim 1 wherein said step of receiving customerinformation from the client system further comprises the steps ofreceiving customer information from an Order, Ship, Bill (OSB) System ofthe client; and determining whether a customer's account is in adelinquent condition.
 3. A method in accordance with claim 1 wherein theserver system is coupled to a client system by a wide area network, saidstep of receiving customer invoice information from the client systemfurther comprises the steps of: establishing a communication linkbetween the client system and the server system; and authenticating theclient system.
 4. A method in accordance with claim 1 wherein the serversystem is coupled to a client system by a local area network, said stepof receiving customer invoice information from the client system furthercomprises the steps of: establishing a communication link between theclient system and the server system; and authenticating the clientsystem.
 5. A method in accordance with claim 1 wherein the server systemis coupled to a client system by the Internet, said step of receivingcustomer invoice information from the client system further comprisesthe steps of: establishing a communication link between the clientsystem and the server system; and authenticating the client system.
 6. Amethod in accordance with claim 5 wherein said step of establishing acommunication link further comprises the step of linking the serversystem to the client system by a telephone link.
 7. A method inaccordance with claim 1 wherein said step of receiving customer invoiceinformation further comprises the step of receiving at the server systemat least one of currency of invoice, due date of invoice, payment termsof invoice, amounts of invoice, invoice number, billing identificationrecognition code, customer identification number, and customer purchaseorder number.
 8. A method in accordance with claim 1 further comprisingthe steps of loading and updating the client system with updated generalledger entries.
 9. A method in accordance with claim 1 furthercomprising the steps of loading and updating the client system withupdated accounts receivable status.
 10. A method in accordance withclaim 1 further comprising the steps of loading and updating the clientsystem with updated customer outstanding balance after posting thecustomer payment.
 11. A method in accordance with claim 1 wherein saidstep of accepting a payment from the customer further comprises thesteps of: identifying at the server system a currency of the invoice;checking the payment currency; converting the payment currency, ifnecessary, to accept the payment in the same currency as the currency ofthe invoice; and using the server system to post the payment to theinvoice and generate any discrepancy report, if necessary, for thecustomer and the client.
 12. A method in accordance with claim 11wherein said step of using the server system to post the payment to theinvoice further comprises the step of using the server system to updatean accounts receivable aging report on-line.
 13. A method in accordancewith claim 1 wherein said step of updating a customer account furtherincludes the steps of: automatically generating a letter requestingspecific instructions to the customer on how to apply the cash if thecustomer account reflects On Account Unapplied Cash; and sending theletter to the customer.
 14. A method in accordance with claim 1 whereinsaid step of generating at the server system journal entries to updateaccounts receivable for the client further includes the step ofgenerating journal entries in real time at the server system to updateaccounts receivable for the client.
 15. A method in accordance withclaim 1 wherein said step of using the server system to post the journalentries further includes using the server system to post the journalentries on the general ledger of the client during a nightly batchprocess.
 16. Apparatus for managing trade receivables credit andcollection services, said apparatus comprising: a plurality of customerdevices; a device associated with a business enterprise, the businessenterprise having a client wherein the business enterprise and theclient are separate and distinct business entities, the client havingcustomers, wherein said business enterprise device is configured with abrowser; a server system associated with the business enterpriseconnected to said business enterprise device, wherein the businessenterprise manages trade receivables credit for the client, managescollection services for the client, and updates a general ledger of theclient; a client system associated with the client in communication witheach of said business enterprise device, said server system, and saidplurality of customer devices, said client system manages ordering ofproducts by customers using said plurality of customer devices, managesshipping of products to customers, and manages billing for orderedproducts; and a database for storing information pertaining to aplurality of clients of the business enterprise and a plurality ofcustomers of the clients; and said server system configured to: receivecustomer invoice information from the client system, the customerinformation includes information relating to a customer of the client;utilize data from the customer invoice information; accept a paymentfrom the customer to the client; apply the payment to invoices issued bythe client to the customer; determine whether a customer's account is ina delinquent condition; update the customer account by posting thepayment and any delinquencies after applying against correct invoices;generate appropriate journal entries to update accounts receivable forthe client; and post the journal entries including any customerdelinquencies on a general ledger of the client via the client systemfor financial monitoring, reporting and auditing purposes.
 17. Apparatusin accordance with claim 16 wherein said client system is an Order,Ship, Bill (OSB) System of the client.
 18. Apparatus in accordance withclaim 16 wherein said client system is coupled to each of said businessenterprise device, said server system, and said plurality of customerdevices by a communication link, wherein the communication link is atleast a wide area network, a local area network and the Internet. 19.Apparatus in accordance with claim 16 wherein said server system isfurther configured to receive customer invoice information from theclient system after authenticating the client system.
 20. Apparatus inaccordance with claim 16 wherein said server system is furtherconfigured to receive from the client at least one of currency ofinvoice, due date of invoice, payment terms of invoice, amounts ofinvoice, invoice number, billing identification recognition code,customer identification number, and customer purchase order number. 21.Apparatus in accordance with claim 16 wherein said server system iscoupled to the client system by a telephone link.
 22. Apparatus inaccordance with claim 16 wherein said server system is furtherconfigured to load and update the client system with updated generalledger entries.
 23. Apparatus in accordance with claim 16 wherein saidserver system is further configured to load and update the client systemwith updated accounts receivable status.
 24. Apparatus in accordancewith claim 16 wherein said server system is further configured to loadand update the client system with updated customer outstanding balanceafter posting the customer payment.
 25. Apparatus in accordance withclaim 16 wherein said server system configured to accept a payment fromthe customer is further configured to: identify a currency of theinvoice; check a payment currency; convert the payment currency, ifnecessary, to accept the payment in the same currency as the currency ofthe invoice; and post the payment to the invoice and generate anydiscrepancy report, if necessary, for the customer and the client. 26.Apparatus in accordance with claim 25 wherein said server system isfurther configured to update accounts receivable aging report on-line.27. Apparatus in accordance with claim 16 wherein said server systemconfigured to update the customer account is further configured to:automatically generate a letter requesting specific instructions to thecustomer on how to apply the cash if the customer account reflects OnAccount Unapplied Cash; and send the letter to the customer. 28.Apparatus in accordance with claim 16 wherein said server system isfurther configured to: grant a specific credit line to a customer basedon a delegated authority limits of a credit officer; and communicate thecredit line information to the client.
 29. Apparatus in accordance withclaim 16 wherein said server system is further configured to: produce anelectronic file showing a customer payment history for electronic inputto any credit agency; retrieve information electronically includingtrade information, aging, credit ratings, credit scoring, and suggestedcredit limit information from any other reputed credit agency; andaccept an electronic file from any other reputed credit agency. 30.Apparatus in accordance with claim 16 wherein said server system iscoupled to the client system by a wide area network, and said serversystem is further configured to receive customer invoice informationthrough a communication link between an Order, Ship, Bill (OSB) Systemof the client and the server system.
 31. Apparatus in accordance withclaim 30 wherein the wide area network is the Internet.
 32. Apparatus inaccordance with claim 16 wherein said server system is further coupledto a customer service analyst computer to provide access to the customerinformation in the server system to the customer service analyst. 33.Apparatus in accordance with claim 16 wherein said server system isfurther configured to reverse previously completed cash payments andassociated general ledger entries on-line and restore the customeraccount to the original balance.
 34. Apparatus in accordance with claim16 wherein said server system is further configured to allow off-settingof items within the customer account and perform on-line updating. 35.Apparatus in accordance with claim 16 wherein said server system isfurther configured to accept funds in foreign currency and translatethem into the required local currency for reporting purposes. 36.Apparatus in accordance with claim 16 wherein said server system isfurther configured to access multiple accounts through at least onedesignated main account.
 37. Apparatus in accordance with claim 16wherein said server system is further configured to allow for selectionof specific invoices in the customer account to be paid which will beformatted into an electronic bank file for funds transference. 38.Apparatus in accordance with claim 16 wherein said server system isfurther configured to generate journal entries in real time to updateaccounts receivable for the client.
 39. Apparatus in accordance withclaim 16 wherein said server system is further configured to post thejournal entries on the general ledger of the client during a nightlybatch process.